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Case Brief · caselaw.co.ke
ELRCPartially AllowedStatement of Claim dated 2nd May 2017· [2019] KEELRC 848 (KLR)

Douglas K. Mutua v Milly Glass Works Ltd [2019] KEELRC 848 (KLR)

Employment and Labour Relations Court
26 September 2019
2,164 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled Milly Glass Works unfairly sacked its IT officer for a subscription lapse management ignored, awarding him Kshs. 294,653.

What this practically means

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Executive summary

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This was an employment dispute in which Douglas K. Mutua, formerly Information Technology Officer at Milly Glass Works Ltd, challenged the termination of his employment on 2nd March 2017 for failure to ensure renewal of the company's Cyberoam internet gateway subscription, which had expired on 31st December 2016. The Claimant argued he had no access rights to the Cyberoam device, which was managed by external consultants Overdrive Consultants (K) Limited, and that upon learning of the expiry he alerted his superiors who ignored him. The Respondent maintained the termination was for gross misconduct and lawful. The court found the Respondent did not contradict the Claimant's evidence that he lacked access rights, and that once he learnt of the expiry he made every effort within his power to secure renewal; the final decision lay with management. On procedure, the court found the Respondent failed to consider the Claimant's representations and that the disciplinary proceedings were never concluded, citing authority that an incomplete disciplinary process violates Section 41 of the Employment Act. The court also held that even if the Claimant were a poor performer, he should have been given time to improve. The court held the termination was substantively and procedurally unfair and awarded six months' salary in compensation (Kshs. 235,200), one month's salary in lieu of notice (Kshs. 39,200) and leave pay for 15.5 days (Kshs. 20,253), totalling Kshs. 294,653, with interest at court rates from the date of judgment, plus costs to the Claimant. Judgment was delivered at Mombasa on 26th September 2019 by Linnet Ndolo, Judge.

Key legal issues

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01

Whether the termination was substantively fair

Holding

Termination was substantively unfair; the Claimant had no access rights to the Cyberoam and did all he could to secure renewal

Reasoning

The court found the Claimant had no access rights to the Cyberoam device, which the Respondent did not contradict. His email requesting access was refused on security grounds. When the external provider alerted him to the expired subscription, he relayed the matter to his bosses who ignored it. The final decision on renewal lay with management, so the Claimant could not be blamed for the lapse.

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02

Whether the termination was procedurally fair

Holding

Termination was procedurally unfair because the Respondent failed to consider the Claimant's representations and never concluded the disciplinary process

Reasoning

The Respondent did not consider the Claimant's representations in his show-cause response and at the disciplinary hearing. Although the hearing of 15 February 2017 was adjourned to later dates, no further proceedings took place; the meeting of 2 March 2017 merely communicated the termination decision. Relying on Moses O. Ogila, the court held an incomplete disciplinary process violates Section 41 of the Employment Act.

p. 4
03

Whether the Claimant was entitled to the remedies sought

Holding

Compensation reduced to six months' salary; notice pay and leave pay admitted and payable

Reasoning

The court awarded six months' salary as compensation considering the Claimant's length of service, employment record and the Respondent's conduct. The claims for one month's salary in lieu of notice and leave pay for 15.5 days were admitted by the Respondent and, absent evidence of prior payment, were due and payable.

p. 4

Legal principles established

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  • An employee who lacks access rights and has escalated a renewal issue to his superiors cannot be faulted for non-renewal of a subscription
  • Poor performance must first be pointed out to an employee with reasonable time given to improve before termination
  • An incomplete disciplinary process offends the procedural fairness requirements of Section 41 of the Employment Act

Court orders

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  1. 1.6 months' salary in compensation of Kshs. 235,200
  2. 2.1 month's salary in lieu of notice of Kshs. 39,200
  3. 3.Leave pay for 15.5 days of Kshs. 20,253
  4. 4.Total award of Kshs. 294,653 with interest at court rates from the date of judgment until payment in full
  5. 5.Claimant to have the costs of the case

Authorities

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Legislation

  • Employment ActSection 44-4c
  • Employment ActSection 41

Cases cited (2)

  • Kenya Science Research International Technical and Allied Workers Union (KSRITAWU) v Stanley Kinyanjui and Magnate Ventures Ltd
    Cause No. 273 of 2010
  • Moses O. Ogila v Mwalimu Co-operative Savings & Credit Society Limited
    [2018] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act 2007 over an employment dispute

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Douglas K. Mutua v Milly Glass Works Ltd [2019] KEELRC 848 (KLR)", Case Analysis (2019). Statement of Claim dated 2nd May 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/848/eng@2019-09-26

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.